Electricity Accounts Payment Assistance

Mr RICHARD AMERY: My question without notice is addressed to the Minister for Utilities. What is the latest information about the Government's plan to protect families from unfair disconnection of their electricity supply?

Mr CARL SCULLY: As honourable members would be aware, we are spending about $5,000 million over the next four years on upgrading our electricity supply across New South Wales, that is, substations, poles and wires, and high-voltage transmission wires. It is not enough that we provide reliable electricity to the consumers of New South Wales, including industrial and commercial premises; we must do it in a way that is fair to the people of this State. Indeed, I told the honourable member for Mount Druitt that 650 homes in Mount Druitt, Shalvey, Bidwill and Tregear had their electricity supply disconnected in the past financial year because they failed to pay their bills on time. In fact, in the past year there has been a 25 per cent increase in the number of customers who were disconnected for not paying their bills. In 2003-04 almost 21,400 households were disconnected; this rose to 27,000 in 2004-05. That is a 25 per cent increase.

Mr SPEAKER: Order! I call the honourable member for Wakehurst to order.

Mr CARL SCULLY: A 25 per cent increase is unacceptable. Many of the people who had their power cut off live in disadvantaged areas, in public housing estates, and they usually live on low incomes such as Centrelink benefits. According to the Energy and Water Ombudsman, the vast majority of people who had their power disconnected actually wanted to pay their bills but could not do so because of financial pressures. They simply could not pay on time.

Mr SPEAKER: Order! I call the honourable member for Wakehurst to order for the second time.

Mr CARL SCULLY: Why is the honourable member for Wakehurst still here?

Mr SPEAKER: Order! The honourable member for Wakehurst will come to order. The Minister will address the Chair.

Mr CARL SCULLY: People who need more time to pay due to genuine hardship must have the option to discuss their circumstances and be given the chance to agree to flexible payment arrangements before they get disconnected. We need to show them more compassion and offer them easier ways to pay their bills. Electricity is vital to everyone, including people who have difficulty paying their bills. That is why we have in place the regulation known as the Electricity Supply (General) Regulation 2001, which puts a number of obligations on electricity suppliers. They must operate payment plans for customers having financial difficulties; they must not disconnect customers without providing two notices; disconnections cannot occur on weekends or public holidays, or when the customer is being assessed for a government-funded rebate or relief system; and they must tell their customers about the existence of New South Wales Government rebate and relief schemes.

Some electricity suppliers have good programs to help people who are struggling to make ends meet. For example, Country Energy has one of the best proactive policies in place, including financial planners, to help customers experiencing financial difficulties. EnergyAustralia has introduced a program called EnergyAssist, which is a plan to help customers suffering financial hardship to better manage their payments. Some retailers now provide Centrepay, which is a voluntary deduction service to Centrelink customers.

[Interruption]

The Leader of The Nationals' view on desalination is disgusting. This allows social security recipients to pay for essential living expenses such as electricity, gas, rent or water before their Centrelink payment goes into their bank account. This Government spends about $80 million each year on assistance for pensioners, those relying on life-support machines, and emergency assistance programs for people experiencing difficulty in paying their bills.

Mr SPEAKER: Order! I call the honourable member for Gosford to order.

Mr CARL SCULLY: The Energy Accounts Payment Assistance Scheme, run by the Department of Energy, Utilities and Sustainability, provides $30 credit vouchers via community welfare bodies to those experiencing temporary difficulty in paying their electricity and gas bills. But more can be done. For example, in Victoria retailers must pay customers who are disconnected in error, that is, the appropriate procedures for disconnection were not followed, they cannot disconnect a customer unless the amount payable is above a prescribed amount, and they must offer customers a payment plan before disconnection.

Mr Brad Hazzard: Do you want a briefing?

Mr CARL SCULLY: A briefing from the honourable member for Wakehurst on what?

Mr SPEAKER: Order! The Minister will address the Chair.

Mr Brad Hazzard: Point of order: If the Minister wants a briefing, why does he not address the request by Sister Vivian at Claymore to get Integral Energy to fund barbecues for the community, which needs somewhere to meet in Claymore Oval? The Minister should address that matter instead of coming out with all this hogwash today.

Mr SPEAKER: Order! I call the honourable member for Wakehurst to order for the third time. The Minister has the call, and he will address the Chair.

Mr CARL SCULLY: The trouble is that a by-election comes and goes and it is up to the Labor Party to look after the people at Macquarie Fields. The honourable member had to buy a Gregory's to find his way. So don't come in here and give me that!

Mr SPEAKER: Order! I call the honourable member for Wakehurst to order.

Mr CARL SCULLY: I have indicated that we need to do more. In the face of a 25 per cent increase, and in the face of the local member having 600-odd residents whose power was disconnected, we need to do more. And we need to do it in an objective, rational way. So I propose to establish an interagency working group, chaired by my department, as quickly as possible. It will have a number of stakeholders on board. I propose the Council of Social Service of New South Wales and the Public Industry Advocacy Centre, and I want the Independent Pricing and Regulatory Tribunal, the Energy Ombudsman and the Energy Retailers Association to come to me as soon as possible with additional measures that could be put in place.